[2024] KEELC 3450 (KLR)

[2024] KEELC 3450 (KLR)

The court found that the agreement expressly allowed for variation in the development cost, requiring only that the developer notify the client of any increase, which was done. The Plaintiff failed to provide evidence that the cost increase was solely due to the addition of units or that the Defendants acted outside...

Source-derived case information.

Citation
[2024] KEELC 3450 (KLR)
Parties
Plaintiff: James Ngunje Kariuki; Defendant: Tofina Rom Builders Ltd; Defendant: Socian Villas Limited; Defendant: David Kivuti Nyaga
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Case Number
Environment & Land Case 334 of 2015
Procedural Posture
Environment and Land Case / Judgment
Outcome
Plaintiff's claim for specific performance and related reliefs dismissed; alternative prayer for refund of purchase price granted with interest; Plaintiff awarded half costs.
Judges
AA Omollo
Legal Topics
Breach of Contract, Specific Performance, Real Estate Development, Refund of Purchase Price
Source Language
en
Land and Property Commercial and Corporate Breach of Contract Specific Performance Real Estate Development Refund of Purchase Price

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Parties

James Ngunje Kariuki

Plaintiff

Tofina Rom Builders Ltd

Defendant

Socian Villas Limited

Defendant

David Kivuti Nyaga

Defendant

Procedural Posture

Environment and Land Case / Judgment

  1. 1 Whether the Defendants breached the contract by unilaterally increasing the cost and number of units in the development project.
  2. 2 Whether the Plaintiff is entitled to specific performance or alternative remedies, including refund of the purchase price and damages.
  3. 3 Whether the termination of the contract and sale of the unit to a third party was lawful under the agreement.

Ratio Decidendi

The court found that the agreement expressly allowed for variation in the development cost, requiring only that the developer notify the client of any increase, which was done. The Plaintiff failed to provide evidence that the cost increase was solely due to the addition of units or that the Defendants acted outside the contract. The Plaintiff did not pay the additional amount as notified, and the Defendants lawfully terminated the contract in accordance with its terms. Since the unit was sold to a third party, specific performance was not available. The Plaintiff was entitled to a refund of the Kshs. 8.7 million paid, with interest from the date of termination notice, but not to damages...

Court Disposition

Plaintiff's claim for specific performance and related reliefs dismissed; alternative prayer for refund of purchase price granted with interest; Plaintiff awarded half costs.

Orders

  • The 1st and 2nd Defendants shall refund the Plaintiff Kshs. 8,700,000 with interest at court rates from seven days after 17th April 2015 until payment in full.
  • Plaintiff's prayers for specific performance, injunctions, damages, and lost rent are dismissed.